A COMPARATIVE STUDY ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS (HDFC, ICICI AND AXIS BANK)

This study presents a comparative analysis of the financial performance of three of India's leading private sector commercial banks -HDFC Bank, ICICI Bank, and Axis Bank -over five financial years from FY2020-21 to FY2024-25.Using secondary data drawn from the banks' annual reports and regulatory disclosures, the study applies ratio analysis, comparative analysis, and trend analysis to examine profitability, asset quality, capital adequacy, liquidity, and operational efficiency through indicators such as Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM), Gross and Net Non-Performing Asset (NPA) ratios, Capital Adequacy Ratio (CAR), Credit-Deposit Ratio, Cost-to-Income Ratio, CASA Ratio, and Earnings Per Share (EPS).The findings show that all three banks delivered strong and improving financial performance across a transformative period marked by the post-COVID recovery, the landmark HDFC-HDFC Bank merger, the 2022-23 interest rate hike cycle, and a structural improvement in sector-wide asset quality.On a composite basis, HDFC Bank ranked first overall on the strength of its asset quality, capital adequacy, and growth, ICICI Bank ranked a close second on the back of superior profitability and efficiency, and Axis Bank ranked third but displayed the strongest improvement momentum.The study concludes that all three banks remain financially sound and offers suggestions to strengthen profitability, liquidity, and long-term competitiveness.